CULTURAL COUNCIL OF NOTES TO FINANCIAL STATEMENTS PALM BEACH COUNTY, INC.

For the Year Ended September 30, 2022

1. Business and Summary of Significant Accounting Policies Organization

Cultural Council of Palm Beach County, Inc. (the "Council") is a not-for-profit corporation whose main goal is to promote visual and performing arts and cultural activities in Palm Beach County, Florida (the "County"). The Council commits its energies and resources to supporting the establishment of new cultural institutions, enhancing existing organizations, and encouraging opportunities for individual artists. The Council reviews applications for and monitors the use of certain funds provided by the Tourist Development Council ("TDC").

Basis of Presentation and Method of Accounting

The accompanying financial statements of the Council have been prepared on the accrual basis of accounting, whereby revenues and support are recognized when earned, and expenses when the corresponding liability is incurred. This basis of accounting conforms to accounting principles generally accepted in the United States of America.

Financial Statements Presentation

The accompanying financial statements have been prepared on the accrual basis of accounting in conformity with the disclosure and display requirements of the Financial Accounting Standards Board (FASB) as set forth under FASB Accounting Standards Codification (FASB ASC) 958-205 Not-for-Profit Entities, Presentation of Financial Statements. Accordingly, the net assets of the Council are reported in each of the following classes:

Net assets without donor restrictions – this classification includes those net assets whose use is not restricted by donors, even though their use may be limited in other respects, such as by contract or by Board designation. Changes in net assets arising from exchange transactions (except income and gains on assets that are restricted by donors or by law) are included in net assets without donor restrictions. The Council releases any purpose restrictions when the asset is placed in service for the use stipulated by the donor.

Net assets with donor restrictions – this classification includes those net assets whose use by the Council has been limited by donors to either a later period of time, or after a specified date, or for a specified purpose. This classification also includes net assets that must be maintained by the Council in perpetuity. Net assets with donor restrictions in perpetuity increase when the Council receives contributions for which donor-imposed restrictions limiting the Council’s use of an asset or its economic benefits neither expire with the passage of time nor can be removed by the Council meeting certain requirements.

Estimates

Management uses estimates and assumptions in preparing financial statements in conformity with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates that were used.